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Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $8 per direct labor hour. Loren is the department manager of the Makeup Department that produces Products - Concealer (C) and Glow Cream (GC). Jennifer is the department manager of the Hair Care Department that manufactures Product - Shampoo (S). The product costs (per case of 24 bottles) and other Information are as follows: Direct materials Direct labor Overhead Machine hours Number of cases (per year) Products GC S $110.00 44.00 28.00 $ 65.00 $52.00 30.00 14.00 $182.00 23.00 $118.00 11.00 $77.00 4 300 2 500 3 600 If Flawless changes its allocation basis to machine hours, what is the total product cost per case for Product C? Multiple Choice $173.50. $180.50. $198.00. $203.50.
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